Operational case file
Case File: One Currency Looked Over, the Other Looked Short
USD and LRD moved in opposite directions from what the transaction description implied.
Evidence basisMoney-exchange direction and exchange-rate handling became explicit controls during TrustPoint testing because a single direction error changes two cash balances at once.
Why FX errors are uniquely dangerous
In a normal single-currency cash transaction, one wrong direction may create one obvious variance. In money exchange, two currencies move simultaneously. A wrong direction can therefore create an apparent surplus in one currency and a matching shortage in the other.
Use the business perspective
| Transaction | Business receives | Business gives |
|---|---|---|
| Buy USD | USD | LRD |
| Sell USD | LRD | USD |
| Buy LRD | LRD | USD |
| Sell LRD | USD | LRD |
The shortage-forensics clue
If USD is over while LRD is short—or the reverse—look for a money-exchange transaction entered backward, a wrong rate, a wrong amount in the second currency, or a transaction recorded in only one currency.
Control lesson
- Record both currencies in every FX transaction.
- Define buy/sell from the business perspective.
- Capture the exchange rate and the amount paid out.
- Reconcile USD and LRD separately.
- Do not hide FX inside generic “cash in/cash out” entries.
This case publishes the accounting direction rule; app rate validation and exception logic remain private.